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Unformatted text preview: ate of inflation, they play a key role in the transmission of monetary policy from the central bank to the rest of the economy. That is, depository institutions are the conduit through which monetary policy actions impact the rest of the financial sector and the economy in general. Monetary policy actions include open market operations (the purchase and sale of securities in the TABLE 1–2 Money Stock, Liquid Assets, and Debt Measures (billions of dollars, averages of daily figures, seasonally adjusted) Measures M1 M2 M3 Debt 1992 Dec. 2001 March 1,024.8 3,509.0 4,183.0 11,706.1 1,110.9 5,099.0 7,325.4 18,447.9 Notes: Composition of the money stock measures and debt is as follows: Source: Federal Reserve Bulletin, Table A15, various years. M1: (1) Currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions. (2) Traveler’s checks of nonbank issuers. (3) Demand deposits at all commercial banks other than those owed to depository institutions, the United States gov...
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This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.

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